DocumentOngoingPublication

DEBT AND CREDIT CONTROL 2026-27

Mkhondo Local MunicipalityRef: https://www.mkhondo.gov.za/wp-content/uploads/2026/06/DEBT-AND-CREDIT-CONTROL-POLICY-2026-27.pdf

Official source

Source domain: mkhondo.gov.za

Collected on 17 June 2026

Always confirm details on the official source before acting.

What this means

This document is the Mkhondo Local Municipality “Credit and Debt Control Policy” for the 2026/27 financial year. It sets out definitions and a framework for credit control and debt collection, including objectives, required policy content under the Municipal Systems Act, and how the municipality will treat defaulters consistently and fairly. It assigns duties to the Council, Executive Mayor, Municipal Manager, and ward councillors, and describes responsibilities for collecting municipal revenue, including legal action via the State Attorney where appropriate. It also outlines customer care management requirements and service application/agreements, including obligations to sign service agreements and rules for dealing with arrears before services are approved.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

repayment agreement frameworkOngoing

Credit control and debt collection arrangements (repayment agreements)

The municipality defines an “arrangement” as a written agreement between the council and a debtor where specific repayment parameters are agreed to, as part of its credit control and debt collection framework.

Who it is for: debtors/customers who are in arrears to the municipality
How to act on it: Enter into a written repayment arrangement with the council (the policy defines the arrangement but the excerpt provided does not describe the application steps).

Show the line this came from

“arrangement” means a written agreement entered into between the council and a debtor where specific repayment parameters are agreed to.

Facts

Reference

https://www.mkhondo.gov.za/wp-content/uploads/2026/06/DEBT-AND-CREDIT-CONTROL-POLICY-2026-27.pdf

Key Takeaways

Mkhondo Local Municipality
Credit and Debt Control Policy 2026/27 financial year
Adopted under section 96(1)(a) of the Municipal Finance Management Act 56 of 2003
Policy objective: define procedures to identify defaulters and treat non-payment consistently, fairly and effectively
Must provide credit control and debt collection procedures and mechanisms (Municipal Systems Act sections 97 and 96)
Interest on arrears: charged at a rate determined by Council
Extensions of time for payment; termination/restriction of services when in arrears
Councillor arrears limit: not more than 3 months in arrears for municipal service fees/rates/taxes/levies (Schedule 1 item 12A of Systems Act); salary/remuneration deductions after 3 months
Staff arrears: Municipal Manager deducts outstanding amounts from salary after 3 months
New appointees with debts must enter agreements for payment/arrears via automatic salary deductions
Municipal Manager responsibilities: maintain debtor accounts/records; refer matters to State Attorney for legal demand/possible court proceedings where economical
Customer care management: establish customer management system, feedback mechanisms, account accuracy, query/appeal processes, complaint handling, pay points/pre-payments
Mkhondo Local Municipality
Municipal Manager (Mkhondo Local Municipality)
Executive Mayor
Council (Mkhondo Local Municipality)
Chief Financial Officer
State Attorney
Ward councillors
Political parties
Steve Tshwete Local Municipality (mentioned in a definition, but policy is for Mkhondo)